The U.S. Department of Housing and Urban Development (HUD) announced Wednesday it will end its loan program for Midwestern states that had been offering homebuyers and renters a loan to help with the aftermath of the deadly Superstorm Sandy.
The program, which was created by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, had been open for more than a decade, offering people with home loans from federally owned banks and credit unions a loan up to $1,500 to buy a home or a renter.
The decision to end the program comes after the Trump administration rolled back several of the requirements that were put in place after the disaster.
The department said it will now offer loan programs to families in all 50 states.
It will also stop offering assistance for people with pre-existing health conditions.
The Department of Labor also said it is suspending its work on its state-specific homebuyer assistance program for the same reasons.
The move is a huge blow to the region’s homebuyership market.
It is also likely to force the states to rethink their financial aid strategies for the next wave of Sandy victims.
The department said the program was a success in the years that followed the storm, helping millions of families purchase their homes, including more than 30,000 families that received the loan directly from the banks.
In 2015, it helped over 40,000 homeowners.